MIE Holdings to Take 51% Stake in Sino Gas & Energy Unit

Hong Kong-listed MIE Holdings is poised to acquire a 51% interest in a unit of Sino Gas & Energy Holdings, a move that secures funding for the development of two coal seam gas tenements in central China, a person familiar with the matter told Deal Journal Australia.

The deal involves MIE Holdings paying US$10 million upfront to acquire an initial interest in Sino Gas & Energy Ltd., currently wholly owned by Sino Gas & Energy Holdings, and a commitment to invest a further US$90 million at a later date to advance the development of the Sanjiaobei and Linxing assets.

Sino Gas & Energy Holdings said June 4 it had signed a letter of intent to fund its interests in China, but didn’t identify the counterparty.